Author Topic: Where does most people store liquidable savings?  (Read 2411 times)

storx

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Where does most people store liquidable savings?
« on: December 14, 2018, 04:23:37 AM »
I am curious what or where people are storing liquidable savings?

I have saved up about 100k after some portfolio changes and W2 income that i have put aside in hopes of purchasing another rental property, but the past 2 years just has been difficult to find anything that meets my requirements on returns in cashflow, so the money has just been sitting in my main bank account (Chase) increasing over time at a terrible 0.09% rate. I know i should have acted on this earlier, but most of the money is from a sale in the past 4 months, so i didnt really loose a lot in potential earnings...

I have read about Ally Bank with the 2.0%, but i noticed there are a few like CIT that are 2.25%, so i wanted to just get yalls opinion on where is the best place currently to park savings tell i can find a deal to act on, so the money has to be liquidable.......

My one friend at work told me he uses Capital One Savings account and gets 2.0%, but he is constantly moving his money around it seems, he is one of those people who cashs in on every open a bank account and each $$$ type of people, i swear he has like 10 different direct deposits going on for his W2 job.

Example: He told me his most recent offer he came across was with HSBC, it was a $450 after 90 days for signing up and direct deposit $5,000, to waive the $25 account fees he put 10,000 from his savings account into it to earn the no fee status, then he took the $5,000 and divided it out by 2.5 months and setup direct deposit his paycheck into the account to qualify for the cash reward. Then later on he will cancel out the account after removing his money and they will send him mail to sign back up eventually with a new cash offer. Just amazed how much mail he gets every day... He said he gets like 10 credit card/bank offers a week in junk mail.

Anyways, which is the best way of going about storing my liquidable assets, Im trying to combine yalls words with the advice my friend gave me which was Capital One.

degrom7

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Re: Where does most people store liquidable savings?
« Reply #1 on: December 14, 2018, 06:03:26 AM »
Read doctor of credit. You can see the different rates and bonuses to compare.


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appleshampooid

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Re: Where does most people store liquidable savings?
« Reply #2 on: December 14, 2018, 10:53:34 AM »
Personally I use VMMXX (Vanguard Prime Money Market)
https://investor.vanguard.com/mutual-funds/profile/VMMXX

Current yield is 2.34%, minus the .16% expense ratio it's a bit over 2%.

I spend some time chasing higher rates until one time I withdrew my whole balance at an account right before interest posted...shot myself in the foot on that one. Now I try to keep it simple.

YttriumNitrate

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Re: Where does most people store liquidable savings?
« Reply #3 on: December 14, 2018, 12:06:51 PM »
While I've done a little bit of credit card / savings account churning in the past, it can be a part-time job (albeit a well paying one if done right). These days, I just stick my liquid savings into an online savings account. I use Barclays, but Ally, Marcus, Capital One, etc. are all about the same and tend to stay within about 0.1% of each other as the rates move up and down.

DreamFIRE

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Re: Where does most people store liquidable savings?
« Reply #4 on: December 14, 2018, 12:50:29 PM »
Personally I use VMMXX (Vanguard Prime Money Market)
https://investor.vanguard.com/mutual-funds/profile/VMMXX

Current yield is 2.34%, minus the .16% expense ratio it's a bit over 2%.

I use VG Prime MM also, but the current compounded yield is 2.37% after expenses, so it's a net of 2.37%

tralfamadorian

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Re: Where does most people store liquidable savings?
« Reply #5 on: December 14, 2018, 01:16:14 PM »
I also churn checking/savings accounts with my next property down payment fund. Remainder goes into Ally.

use2betrix

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Re: Where does most people store liquidable savings?
« Reply #6 on: December 15, 2018, 08:11:44 PM »
Iíve been using American Express savings for about 8 years for a backup emergency fund. Itís often close to 2% and had been. Not worth the hassle of moving around for a small fraction of a percent (to me)

ACyclist

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Re: Where does most people store liquidable savings?
« Reply #7 on: December 15, 2018, 09:11:40 PM »
2.0 for cash, trading account 1.59, but it stays there very briefly

Investing in Cds now for 5 years, each month

Fire goal 2023, Dec ish

We will need to work a little, so maybe it means FI?

Indexer

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Re: Where does most people store liquidable savings?
« Reply #8 on: December 15, 2018, 10:20:19 PM »
Personally I use VMMXX (Vanguard Prime Money Market)
https://investor.vanguard.com/mutual-funds/profile/VMMXX

Current yield is 2.34%, minus the .16% expense ratio it's a bit over 2%.

I use VG Prime MM also, but the current compounded yield is 2.37% after expenses, so it's a net of 2.37%

Same here, VG Prime.

storx

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Re: Where does most people store liquidable savings?
« Reply #9 on: December 16, 2018, 07:31:42 AM »
How liquid is that VG Prime account? how long does it take to say remove 100% of the money from it if i was come across a deal neeing funded....

Also if i am viewing that correctly, this is the first year its been over 2%, previous years around 1% and below 1% some years correct?

kenaces

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Re: Where does most people store liquidable savings?
« Reply #10 on: December 16, 2018, 09:36:40 AM »
Robin hood just started to offer 3% for their "savings" accounts.  I haven't looked at the details of this(i.e. is it FDIC insured?)

I also read that Wealthfront will begin offering a high yield saving account of some type in early 2019.

degrom7

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Where does most people store liquidable savings?
« Reply #11 on: December 16, 2018, 09:42:16 AM »
Robin hood just started to offer 3% for their "savings" accounts.  I haven't looked at the details of this(i.e. is it FDIC insured?)

I also read that Wealthfront will begin offering a high yield saving account of some type in early 2019.

It's not FDIC insured.


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HamsterStache

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Re: Where does most people store liquidable savings?
« Reply #12 on: December 16, 2018, 09:49:41 AM »
Capital one 360 money market. At 2% currently

Grafter

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Re: Where does most people store liquidable savings?
« Reply #13 on: December 16, 2018, 10:31:15 AM »
storx - It's very liquid.  It usually takes about 1-3 business days for a withdrawal of it to hit and clear my checking account after I ask for a disbursement (with ACH transfer).

kenaces - Robinhood is not FDIC insured.  They claim it is insured under the SIPC, however, that may not be the case.  https://www.bloomberg.com/news/articles/2018-12-14/sipc-says-it-has-serious-concerns-about-robinhood-s-new-product

DreamFIRE

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Re: Where does most people store liquidable savings?
« Reply #14 on: December 16, 2018, 11:29:39 AM »
How liquid is that VG Prime account? how long does it take to say remove 100% of the money from it if i was come across a deal neeing funded....

Also if i am viewing that correctly, this is the first year its been over 2%, previous years around 1% and below 1% some years correct?

In recent years, it's been close to 0%, but this is definitely not the first year it's ever been over 2%.  As an example, in 2007, it was over 5%.  You can view historical information on Vanguard's site.

PDXTabs

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Re: Where does most people store liquidable savings?
« Reply #15 on: December 16, 2018, 12:54:17 PM »
I have some money at CIT Bank but I'm slowly building up a stash of I Series Savings Bonds. The new ones are earning 2.83%.

HAPPYINAZ

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Re: Where does most people store liquidable savings?
« Reply #16 on: December 16, 2018, 02:21:43 PM »
Capital one money market acct - 2% currently

Much Fishing to Do

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Re: Where does most people store liquidable savings?
« Reply #17 on: December 17, 2018, 05:57:09 AM »
How liquid is that VG Prime account? how long does it take to say remove 100% of the money from it if i was come across a deal neeing funded....

Also if i am viewing that correctly, this is the first year its been over 2%, previous years around 1% and below 1% some years correct?

In recent years, it's been close to 0%, but this is definitely not the first year it's ever been over 2%.  As an example, in 2007, it was over 5%.  You can view historical information on Vanguard's site.

I use VG Prime MM to.  I already use a vanguard account so its easy, money moves to/from bank account in either 2 or 3 days.  Seems to keep up with about where a good 6mth cd is at (and I've been impressed at how it moved up with rates recently instead of lagging way behind like seems to happen in a lot of other similar products), so I've just settled on putting everything cash there and not worrying about trying to eek out anymore as it doesnt seem like there is much more to get without risk or a huge hassle.

effigy98

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Re: Where does most people store liquidable savings?
« Reply #18 on: December 17, 2018, 01:16:04 PM »
SHY ETF

Boofinator

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Re: Where does most people store liquidable savings?
« Reply #19 on: December 17, 2018, 01:29:28 PM »
Typically stocks unless the capital I am trying to preserve is a large percentage of the portfolio. If that is the case, in that I really feel the need to preserve that capital and to liquidate in a short timeframe, short term bonds. I am generally willing to take a small risk of a small loss to shoot for the larger expected return. (The exception would be if every dollar was earmarked, and I absolutely could not pull capital from elsewhere, in which case I would consider some of the options previously proposed.)